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Search advertising is set to lead the recovery in European online ad spend next year, while email, classifieds and display ads have been hardest hit by the recession, according to new research. The IAB’s latest Europe’s annual AdEx study indicates that overall online advertising in the UK will fall 0.4% this year, but ad spend is expected to rise 2.4% next year, the IAB predicted.

Across Europe, search will grow 8% in 2009, representing almost half (46%) of the total online ad market in the continent. In contrast, growth in online display will grow just 0.4% across Europe, hit by a drop in branding advertising and falling rates. Meanwhile, classifieds fell 4.7% in 2009, hit by downturns in the property, job and car market.

In 2008 online advertising grew 20% in Europe compared to the previous year. However, some of the most mature and recession-stricken markets - the UK, the Netherlands, Norway and Sweden – were already experiencing a significant slowing of growth whilst underdeveloped markets enjoyed double-digit growth rates.

Global adspend is on course to reach $421bn (£255bn) during 2009 according to the latest figures from PricewaterhouseCoopers (PwC), writes eMarketer. This represents a 12.1% fall on 2008 when global adspend totalled $479bn (£291bn), according to the firm. PwC expects all advertising sectors to suffer during the year other than video game advertising. However, the firm does predict better times for digital marketing in 2010: both internet advertising (including mobile) and video game advertising are forecast to see five-year compound annual growth of 7.7% and 13.8% respectively. Globally, PwC forecasts that total media spend will rise by 2012.eMarketer: http://www.emarketer.com, 22/07/2009

Screen Digest have predicted that in-game advertising will be worth over $1bn (£627m) by 2014, writes Media Week. The firm's study, "In-Game Advertising: Market Assessment and Forecasts to 2014", forecasts that the sector will grow to take 1.5% of all digital adspend, as advertisers understand the benefits. According to Screen Digest these include scalability, accountability, high levels of audience engagement, and positive brand associations. Adam Smith, futures director at GroupM said "Given gaming is now a mainstream leisure interest, in-game deserves the same consideration as mobile and social media."From Media Week: http://www.mediaweek.co.uk, 26/05/2009
Screen Digest: http://www.screendigest.com

A new study from Continental Research has shown that British gamers are highly receptive to dynamically served ads which appear during games, writes Netimperative. The research, carried out on behalf of in-game ad firm Massive Inc, found that the average ad recall rate was 54%. In addition, 65% of UK gamers think that in-game ads make games seem more realistic, while 55% find the ads "look cool". Furthermore, brands that advertise in games are also perceived by gamers as innovative.
In-game ads also benefit from frequent and high levels of sustained exposure as gamers tend to spend significant amounts of time playing. Gamers on Massive's online gaming network, for example, average 12 hours per week playing.From Netimperative: http://www.netimperative.com, 12/05/2009
Continental Research: http://www.continentalresearch.com

Third quarter revenues at Google were up 31% year-on-year, beating Wall Street expectations, writes ClickZ. Revenues for the quarter totalled $5.54bn, up 3% on Q2.
Net income in Q3 was $1.35bn (from $1.25 in Q2). 67% of revenues came from its own web sites, up 34% from the same point in 2007. 30% of revenues ($1.68bn) came from partners through the firm's AdSense network. In total 51% (or $2.85bn) of Q3 revenues came from outside the US.
Google has also announced two expansions to its AdSense ad system. Firstly the firm is rolling out contextual ads in its online mapping service, by serving text ads which are geographically relevant to individual searches. In addition the firm is making its first move into the in-game advertising market with the launch of "AdSense for Games". In-game advertising is set to become increasingly significant - new figures from comScore show that 25% of internet users play online games ever week - equivalent to 200m users worldwide.From ClickZ: http://www.clickz.com, 16/10/2008
Google AdSense: http://www.google.com/adsense

Barack Obama's presidential campaign has gone after the youth vote with a high-profile use of in-game advertising, writes Brand Republic. The election campaign paid for adverts across 18 video games including "Burnout Paradise", "Guitar Hero" and "Madden 09". Adverts in the racing game "Burnout Paradise" on the Xbox 360 Live network featured realistic billboard ads at the side of the road for both Barack Obama and VoteForChange.com.From Brand Republic: http://www.brandrepublic.com, 14/10/2008
VoteForChange.com: http://www.voteforchange.com

Google's Q4 profits rose from $372m (£189m) to $1.03bn year on year, writes ENN. Net profits after adjustments and charges were $997m (£518m). Revenues for the quarter grew 67% (from $1.92bn (£998m) to $3.21bn (£1.67bn)) compared to Q4 2005 and 19% compared to Q3 2006. International revenues accounted for 44% of total income. Google-owned sites generated $1.98bn (£1.03bn), up 80% from the year before ($1.10bn or £572m), while partner sites generated $1.20bn (£624m) (up 50% on 2005's figure of $799m (£415)). Advertising-related paid clicks increased 61% from the year before and 22% from the previous quarter.
Google is also moving into in-game advertising with the $23m (£11.8m) acquisition of Adscape Media Inc. The move follows Microsoft's $200m purchase of Massive Inc. last year and reflects industry expectations that the sector will continue to show strong growth. According to Yankee Group Research in-game ad revenues will be worth up to $700m (£364m) by 2010.From ENN: http://www.electricnews.net, 01/02/2007
Google: http://www.google.com